Job Loss, Pay Cut? First 48 Hours Crucial In Such Cases, UAE Experts Say

With some people in the UAE facing pay cuts, furloughs and job losses, experts are warning that this could be an existential threat to those who live paycheck to paycheck. Some have warned that the difference between recovery and ruin often comes down to the decisions made in the first 48 hours.

Rashmi Rajkumar, Partner at ECOVIS JRB Chartered Accountants, argues that while a six-month fund is ideal, it is not realistic for most. She urges workers to focus on "runway" rather than panic.

"The first 48 hours matter more than the next 48 days," Rashmi said. "Know your runway. Speak to your landlord before a cheque becomes a problem, not after. Most will work with you if you approach them early. Schools are often more flexible than people assume, but only if you initiate the conversation."

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Dubai resident Mohammed K., who was recently placed on a furlough of six months, said that his first step after walking out was to get in touch with his landlord, bank and his children's school.“I emailed all of them and let them know of my position,” he said.“The bank froze my loan payments for three months. My landlord and the school didn't give me any discounts, but they gave me a monthly payment plan.”

For those without a safety net, the advice is brutally practical. Salam Pappinissery, CEO of Yab Legal Services, warned that while desperation leads many to seek quick cash, illegality is not an option in the UAE.

"If you do not have an emergency fund, you can try legal freelance or part-time jobs, but you must obtain a formal work permit or NOC," he said. "Engaging in 'off-the-book' work without a permit can lead to severe legal penalties, fines, or deportation."

Serial entrepreneur Ellen Mannaert cautioned that ego is the biggest barrier to survival. She advises selling assets immediately and ignoring social pressure to maintain a lavish lifestyle.

"Sell what you own that is not essential. The watch, the bag, the second laptop," she said. "Cash matters more in this season than the story those things were telling. The hardest part is letting go of the version of ourselves we were performing for other people. The image, the LinkedIn post, the Friday brunch."

Beth Clay, Financial Wellness Consultant at Financed Well, said that the "story you tell yourself" often causes more damage than the actual pay cut. She advocates for radical transparency with banks and family.

"The first thing I ask anyone in this situation is 'what is the story you are telling yourself right now?'" she said. "Most people either freeze and avoid their finances, or overcorrect and make fast, reactive decisions. What actually works is taking a step back."

She shared the case of a client named Mostafa, a tech worker made redundant after 11 years in the UAE. After calculating his gratuity and reduced outgoings, he realised he had seven months of runway. "Seeing his face take in that number was a relief," she recalled. "That buffer meant he could take time looking for the right opportunity and not take the first one. He was back in permanent employment four months later at a higher salary than before."

The consensus is clear: denial is the enemy. Whether through negotiating rent, filing for ILOE insurance, or moving to a smaller unit, survival depends on action over hope. Ellen concluded, "A moment like this is not the end of your identity. It is one of the rare times we are forced to look honestly at what was really working and what was not."

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